Kevin Yao, Reuters

China's government has been seeking advice from its think-tanks and policy advisers on how to counter potential trade penalties from U.S. President Donald Trump, getting ready for the worst, even as they hope for business-like negotiations.

China's economic growth is expected to cool to 6.6% this year and slow further to 6.5% in 2017, even as the government keeps up policy support to help ward off a sharper slowdown, a Reuters poll showed.

On the face of it, China's central bank has room to cut interest rates to try to lift the economy, but sources say evidence companies and banks are hoarding cash has reinforced policymakers' view there is no major benefit in easing policy further.